Ford Motor Company
Lincoln and Mercury AnnouncementsA Message from Mark Fields, President of the Americas

Today marks another important milestone in our company's transformation as we solidify plans to further grow our Ford brand while accelerating Lincoln.

We are announcing today plans to introduce seven new or significantly refreshed Lincoln vehicles in the next four years, including Lincoln's first-ever C-segment vehicle.

We also are announcing that we will end production of Mercury vehicles in the fourth quarter of this year. While Mercury served us well in the past, it now is time to fully devote our resources and attention to growing Lincoln, just as we have been doing so successfully with the Ford brand.

We are meeting today with our dealers, the news media and other key stakeholders to ensure everyone understands our plan. It is equally important that each of us becomes familiar with the details of this announcement. Visit @Ford Online for more details.

Ford to Expand Lincoln Lineup and Brand Emphasis;
Mercury Production Ends in Fourth Quarter of 2010

Ford is expanding its Lincoln lineup with seven all-new or significantly refreshed vehicles in the next four years – including its first-ever C-segment vehicle

Lincoln’s plan accelerates with more investment and attention on standout product design, class-leading technology and powertrains delivering top performance and fuel efficiency

Lincoln product development, marketing, sales and service resources expanding as the brand aims to compete with Cadillac and Lexus in the marketplace

Ford will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing Lincoln

Existing Mercury owners to receive continued access to parts and service support at Ford and Lincoln dealers; current Mercury warranties and Extended Service Plans will be honored; special offers available on new Mercury vehicles through the summer

Affected dealers to receive specialized support during the transition, as the company continues its transformation to a more profitable dealer network

Mark Fields shares more insight on today’s news in this video on @Ford Online. Here is one question and answer from that interview.

Q: How does this support our ONE Ford plan?
A: This is really the continued evolution of us executing our ONE Ford strategy. It all starts with us being very consistent and very devoted to having world-class products come into the market place from either Ford or Lincoln. Also, staying focused on our four product pillars of Quality, Green, Safe and Smart. It’s just the next step in the ONE Ford plan and the next step in profitably growing our business and bringing satisfied customers along the way.
Click here to watch the video.

Lincoln and Mercury Announcements – Additional Information

Q: Why did we say last week that our plans for Mercury had not changed?
A: We had not made any final decisions. The decision was made by the board this week. The decision was an outcome of the extensive business and product plan review we conduct each spring as part of our cycle plan process. We determined we should fully devote our resources to continuing to grow the Ford brand and accelerate Lincoln.

Q: Did we think about selling Mercury instead of discontinuing?
A: We believe the best business decision is to discontinue Mercury rather then trying to sell the brand. We expect that the majority of Mercury volume will be replaced by Ford and Lincoln sales.

Q: When will the last new Mercury vehicles be sold at dealerships?
A: We expect that the vast majority of dealership won’t sell new Mercury vehicles beyond the end of 2010.

Ford Motor Company now has the highest customer satisfaction with vehicle quality among all major automakers

Lincoln

Lincoln is expanding its brand lineup with seven all-new or significantly refreshed vehicles in the next four years, including its first-ever C-segment vehicle.

Lincoln has started gaining traction with customers, as evidenced by market share gains over the past five years. Lincoln's retail U.S. luxury vehicle market share has grown from 4.5 percent in 2005 to 6.3 percent through the first quarter of 2010.

The new Lincoln MKZ Hybrid is expected to be the most fuel-efficient luxury sedan in America.

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